Business risks refer to the potential challenges and uncertainties that can negatively impact a company's operations and profitability. These risks can arise from various sources, including market fluctuations, changes in consumer preferences, and economic downturns. Understanding these risks is essential for businesses to develop strategies that minimize their impact. Another significant aspect of business risks is regulatory compliance. Companies must adhere to laws and regulations, such as those related to labor, safety, and environmental standards. Failure to comply can result in legal penalties, financial losses, and damage to a company's reputation, making it crucial for businesses to stay informed about relevant laws and regulations.